AJ Lucas Group (ASX: AJL) has entered into a five year Strategic Co-operation and Partnership Agreement with a subsidiary of the giant Chinese petroleum company CNPC.
AJ Lucas is focused on providing specialist infrastructure, construction and drilling services to the energy, water and waste water, resources.
The deal is with China Petroleum Pipeline Bureau, which is one of the largest general contractors in the oil and gas industry worldwide and engages in the full spectrum of R&D, survey, consulting, design, procurement, construction, coating, fabrication, intelligent pigging, maintenance and repair of pipelines and storage operations.
AJ Lucas and the China Petroleum Pipeline Bureau have already had a working relationship for a decade, which the formalised deal to take advantage of mutual potential oil and gas opportunities in China - and the rest of Asia.
The agreement has commenced immediately and covers co-operation and working together on areas including; HDD Crossings; Coal Seam Gas and Shale Gas; Drilling Well Completions, Work Overs; New Pipeline Technologies; and Strategic Co-Operation.
AJ Lucas said that the company and the China Petroleum Pipeline Bureau have already identified a number of opportunities on which to work together.
AJ Lucas investments
AJ Lucas is also a proven developer of unconventional hydrocarbon properties, with current investments including a 44% shareholding in Cuadrilla Resources, an exploration and production company focused on unconventional hydrocarbons.
The company also has direct interests in 18.75% of the Bowland and 25% of the Weald shale basin prospects in respectively North West and South East England.
Past projects successfully developed and exited include the company’s investments in Gloucester Basin, Sydney Gas and ATP651 in Queensland’s Surat Basin.
AJ Lucas recently completed an institutional entitlement to raise gross proceeds of around $103.8 million.
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